Tag: subprime

ESPAÑISTAN, real estate bubble and Spanish crisis

ESPAÑISTAN: The Real Estate Bubble and the Spanish Crisis in Comic Form, by Aleix Saló

Aleix Saló is preparing the release of a comic strip set during the Spanish real estate bubble and the subsequent crisis that Spain has been experiencing since 2008.

For its launch, he has created a very interesting video that illustrates the process Spain went through—a process that, in 2011, is still being felt.

Enjoy the video:

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Y si deseas descargar el vídeo, te recomiendo seguir las siguientes instrucciones para descargar videos desde firefox.

The destruction of money and the crisis

Money can be created, as I indicated, and destroyed. And I am not referring to burning banknotes. The simple act of repaying a loan is a destruction of that virtual money implied by the debt itself. If I sign a promissory note and others use that promissory note as payment, that promissory note is money. If I cancel the debt of the promissory note, the promissory note ceases to exist; that money disappears from circulation. In the moment before my payment, both monies existed—the promissory note and my money—and the moment I cancel it, the promissory note ceases to exist. Destruction of money.

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